On the Markets

Investment Update April 2019

Key Points U.S. stocks continue to trend higher, indicating investor optimism about economic growth, while a flat/inverted yield curve has tended to herald a weakening economy—the truth may be somewhere in between. Mixed economic data continues into the second quarter, and earnings season has just begun. A negative quarter for S&P 500 earnings is expected,… Read more »

Investment Update March 2019

Key Points U.S. stocks have been fairly resilient in the face of slowing economic growth and rising fears of a recession. Volatility has been subdued, but bouts could reemerge dependent on a few key developments. A recession is inevitable at the end of a cycle; it’s just a question of when. Looser financial conditions and… Read more »

Investment Update February 2019

Key Points The sharp rebound in U.S. stocks since the Christmas Eve 2018 low has been a welcome development for the bulls, still, we are concerned that the pendulum may have swung a bit too far.  The fourth quarter 2018 earnings season has been healthy, although estimates for this year’s first quarter have descended into… Read more »

Investment Update January 2019

Highlights U.S. stock markets were down in the 4th quarter ~ as were developed international and emerging market equities, though somewhat less so than domestic equities. The S&P 500 ended the year down for the first time since the global financial crisis. The partial government shutdown is creating uncertainty as to the extent of the… Read more »

Our Take on the Economy, the Markets & Volatility

Back in October of 2016, in the midst of a very turbulent period for investors, we circulated the piece below.  At that time, these were some of the prevailing headlines that contributed to market pessimism: “There’s a Lack of Leadership Around the World” “A New Cold War (Between the US and Russia) Has Begun” “Deflation… Read more »

Why Global Equity

Volatile markets, as we’ve experienced recently, can be unsettling for many long-term investors and cause them to question their carefully laid investment plans.  As a client of Lexington Wealth Management, your particular plan most likely includes having an allocation to both U.S. and international stocks.  Year-to-date, however, international stocks have not fared well relative to their domestic counterparts, and you… Read more »

Quarterly Market Review for the 3rd Quarter of 2018

We are pleased to share our Quarterly Market Review for the 3rd Quarter of 2018. This review encompasses a global perspective and reflects on a wide array of asset classes. Each Lexington Wealth client has a personal investment strategy, so some of these asset classes may not be present in your custom portfolio. Please contact… Read more »

Market Volatility – What You Should Know!

As many of you know, we work with Rocaton Investment Advisors, one of the largest investment research firms in the world, to provide the most comprehensive and in-depth portfolio solutions to our clients. We asked them to comment on the market volatility experienced in the last week and we would like to share their thoughts… Read more »

Tax Reform: A Guide for Investors

The Tax Cuts and Jobs Acts is the most comprehensive piece of tax legislation since 1986. Figure 1 provides a summary of the major changes that will impact individuals and corporations. On the individual side, the important takeaways of the TCJA are as follows: 1) increases the standard deduction and eliminates personal exemptions, 2) places… Read more »

Technological Change and its Impact on Financial Markets

In recent years, investors have placed a greater emphasis on understanding the various risks inherent in their portfolios. Often, investors cite economic growth, inflation and illiquidity as the primary drivers of risk. We believe another dimension that investors should consider is an asset’s exposure to technological change.

What’s Your Exposure to China?

How much exposure do you have to China? This is arguably one of the most important questions for investors to ponder. Investors might assume their exposure to China is quite low, perhaps only 1-2% at the total portfolio level. Investors with large exposures to emerging market investments (equity or debt) might assume their exposure to… Read more »

What is MiFID II? And why should you care?

In 2004, the EU passed the Markets in Financial Instruments Directive (“MiFID”) to synchronize financial services regulation and create a single, cross-border securities market in Europe1. The EU then proposed a more robust framework in 2014 to create new platforms, strengthen investor protections and improve transparency2. The revised framework, known as “MiFID II”, will take… Read more »

A Letter from the LWM Investment Committee, January 2016

Over the last few months we have kept you informed of some important work of the Lexington Wealth Management Investment Committee which culminated in replacing our research partner of a dozen years, Fortigent, with Rocaton Investment Advisors. We introduced this effort at our client event in September, and more recently in our webinar presentation in… Read more »

US Election Implications

Donald Trump’s victory in the U.S. presidential election was a surprise to many market participants, resulting in increased market volatility immediately following the election. There is a level of uncertainty with this result as Trump has put forward fewer policy specifics than most Presidential candidates.

How to Get Beyond Our Tribal Politics

Whether Hillary Clinton or Donald Trump wins Tuesday, understanding the psychological causes of our national rift can help us bridge it.